Korea / Special Sits, Pairs, Index Rebalancing, Clepsydra Capital

Sanghyun Park

Korea / Special Sits, Pairs, Index Rebalancing

Clepsydra Capital

Investigate special situations, pairs, and index rebalancing trades in Korea.

Event-Driven

<ul>
<li>The plan is to select 20 large-cap companies from around 30 with value-up disclosures by late August, then gradually expand the index's constituents.</li>
<li>Investors seeking both dividends and value-up benefits must buy stocks individually, as ETFs lack tax advantages, potentially triggering fund shifts from dividend ETFs to value-up stocks.</li>
<li>We can target stocks in dividend ETFs not making value-up disclosures, as they may face overhang risk during fund migration to the value-up index.</li>
</ul>


The plan is to select 20 large-cap companies from around 30 with value-up disclosures by late August, then gradually expand the index's constituents.
Investors seeking both dividends and value-up benefits must buy stocks individually, as ETFs lack tax advantages, potentially triggering fund shifts from dividend ETFs to value-up stocks.
We can target stocks in dividend ETFs not making value-up disclosures, as they may face overhang risk during fund migration to the value-up index.


Flow Developments to Watch as the Release of the Value-Up Index Approaches

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Douglas Research Advisory

Equity Bottom-Up

<ul>
<li>One of the important factors of big changes at the Korean chaebols is the age factor of the chairman/honorary chairman of each of these conglomerates.</li>
<li>In this insight, we provide the shareholding ownerships and ages of the top 10 Korean conglomerates where age could become a major factor in impacting big changes that could occur.</li>
<li>Among the 10 conglomerates listed below, Hyundai Motor Group, Celltrion Group, and SK Group have shown greater willingness to improve their shareholder return policies.</li>
</ul>


One of the important factors of big changes at the Korean chaebols is the age factor of the chairman/honorary chairman of each of these conglomerates.
In this insight, we provide the shareholding ownerships and ages of the top 10 Korean conglomerates where age could become a major factor in impacting big changes that could occur.
Among the 10 conglomerates listed below, Hyundai Motor Group, Celltrion Group, and SK Group have shown greater willingness to improve their shareholder return policies.


Potential Big Changes at the Korean Chaebols - The Age Factor of Chairman/Honorary Chairman

Tracking developments across tech supply chains, Tech Supply Chain Tracker

Tech Supply Chain Tracker

Tracking developments across tech supply chains

<ul><li>Micron is sampling MRDIMMs for AI and HPC applications, exploring innovative solutions for data processing needs.</li><li>Hyundai Motors plans to add 300 new charging stations to support the expansion of their hydrogen bus fleet, promoting eco-friendly transportation options.</li><li>German electrification struggle worsens with supplier bankruptcy up 60%, hindering the widespread adoption of electric vehicles and renewable energy technologies.</li></ul>

Micron is sampling MRDIMMs for AI and HPC applications, exploring innovative solutions for data processing needs.Hyundai Motors plans to add 300 new charging stations to support the expansion of their hydrogen bus fleet, promoting eco-friendly transportation options.German electrification struggle worsens with supplier bankruptcy up 60%, hindering the widespread adoption of electric vehicles and renewable energy technologies.

Tech Supply Chain Tracker (20-Jul-2024): Micron samples MRDIMMs for AI, HPC.

<ul>
<li>In this insight, we discuss numerous gap trades involving Korean preferred and common shares in 3Q 2024.</li>
<li>The recent push for Korea Value Up program has helped to push up prices of numerous Korean preferred stocks including <a href="https://www.smartkarma.com/entities/hyundai-motor-co-44d5ac4e-94e3-4be9-b34f-5f3155e7a3d6" target="_blank" data-smartkarma-citation="entities:26936:1" rel="noopener">Hyundai Motor (005385 KS)</a>. </li>
<li>On a longer timeframe (3-4 years), we believe this discount could narrow further to the 20-25% range, which provides additional opportunities for the Korean preferred shares to further make gains.</li>
</ul>


In this insight, we discuss numerous gap trades involving Korean preferred and common shares in 3Q 2024.
The recent push for Korea Value Up program has helped to push up prices of numerous Korean preferred stocks including Hyundai Motor (005385 KS). 
On a longer timeframe (3-4 years), we believe this discount could narrow further to the 20-25% range, which provides additional opportunities for the Korean preferred shares to further make gains.


Gap Trades in Korean Prefs Vs Common Share Pairs in 3Q 2024

<ul>
<li>Hyundai's IR team appears to have communicated that a new shareholder return policy would be unveiled at the rescheduled CEO Investor Day in August.</li>
<li>Hyundai aims to boost shareholder returns above 30% by canceling ₩800B to ₩1T in shares annually. The new dividend strategy won't debut in August; last year's three-year plan stands.</li>
<li>Equal cancellation ratios apply to common and three types of preferred shares. August's timing, with ISA tax reforms potentially favoring preferred shares, may enhance prefs' price impact relative to ords.</li>
</ul>


Hyundai's IR team appears to have communicated that a new shareholder return policy would be unveiled at the rescheduled CEO Investor Day in August.
Hyundai aims to boost shareholder returns above 30% by canceling ₩800B to ₩1T in shares annually. The new dividend strategy won't debut in August; last year's three-year plan stands.
Equal cancellation ratios apply to common and three types of preferred shares. August's timing, with ISA tax reforms potentially favoring preferred shares, may enhance prefs' price impact relative to ords.


Hyundai Motor's Special Shareholder Return Plan Likely Unveiled in August IR Event

South Korea

Hyundai Motor Company manufactures, sells, and exports passenger cars, trucks, and commercial vehicles. The Company also sells various auto parts and operates auto repair service centers throughout South Korea. Hyundai Motor provides financial services through its subsidiaries.

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Hyundai Motor (005385 KS)

Flow Developments to Watch as the Release of the Value-Up Index Approaches

This post investigates potential flow developments that we should watch as the the release of the value-up index approaches.

Sanghyun Park

Potential Big Changes at the Korean Chaebols - The Age Factor of Chairman/Honorary Chairman

One of the important factors of big changes at the Korean chaebols is the age factor of the chairman/honorary chairman of each of these conglomerates.

Douglas Kim

Tech Supply Chain Tracker (20-Jul-2024): Micron samples MRDIMMs for AI, HPC.

Micron samples MRDIMMs for AI/HPC, Hyundai adds 300 charging stations for hydrogen buses, German electrification woes, India's semiconductor...

Tech Supply Chain Tracker

Hyundai Motor's Special Shareholder Return Plan Likely Unveiled in August IR Event

This post explores the likelihood of Hyundai Motor unveiling a special shareholder return plan, emphasizing increased share cancellation during the...

Sanghyun Park

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Flow Developments to Watch as the Release of the Value-Up Index Approaches

This post investigates potential flow developments that we should watch as the the release of the value-up index approaches.

Sanghyun Park

Potential Big Changes at the Korean Chaebols - The Age Factor of Chairman/Honorary Chairman

One of the important factors of big changes at the Korean chaebols is the age factor of the chairman/honorary chairman of each of these conglomerates.

Douglas Kim

Tech Supply Chain Tracker (20-Jul-2024): Micron samples MRDIMMs for AI, HPC.

Micron samples MRDIMMs for AI/HPC, Hyundai adds 300 charging stations for hydrogen buses, German electrification woes, India's semiconductor...

Tech Supply Chain Tracker

Gap Trades in Korean Prefs Vs Common Share Pairs in 3Q 2024

We discuss numerous gap trades involving Korean preferred and common shares in 3Q24. The recent push for Korea Value Up program has helped to push...

Douglas Kim

Hyundai Motor's Special Shareholder Return Plan Likely Unveiled in August IR Event

This post explores the likelihood of Hyundai Motor unveiling a special shareholder return plan, emphasizing increased share cancellation during the...

Sanghyun Park